Almost three quarters (72%) of consumers believe the speed of any claim payment is the key driver of “good value”, according to research from MetLife UK.
The research measured consumers attitudes towards protection ahead of the Financial Conduct Authority (FCA) implementing the new Consumer Duty regulation, which comes into effect from 31 July.
Touted as one of the biggest changes in the retail consumer regulatory landscape, the new duty aims to raise standards for consumers with a strong emphasis on delivering good value and outcomes for customers.
Other factors are also important. MetLife’s research showed that consumers also consider flexibility, ease of access and choice as significant indicators of good value.
More than two thirds (68%) of consumers said they viewed protection products as providing good value based on the ability to flex them to their individual lifestyle needs.
A simple application process for insurance and protection products was also a strong indicator of value for 61% of respondents.
A total of 41% of consumers said having a more varied or diverse set of life and health insurance and individual protection products, and providers, would provide them with better value.
This was particularly true among younger age groups, with more than half (53%) of 18- to 34-year-olds supporting this view.
Justin Harper, head of propositions at MetLife UK, (pictured) said: “With the introduction of the FCA’s new Consumer Duty less than two months away, our research clearly highlights how consumers perceive good value when considering financial protection.
“Unsurprisingly, speed and efficiency of claim payment is a top priority for protection customers – the point of claim is their moment of truth. While we can improve even further, we’re proud that in Q1 2023, we paid 90% of all claims within just five working days.
“Our research also points to consumers wanting and valuing greater diversity. So, it’s vitally important that we, and the protection sector, continue to challenge ourselves to improve and innovate.
“To deliver good value, our products and services need to reflect and anticipate the ever-changing lives and evolving needs of our customers,” he said.
